The Rhode Island House Finance Committee held a hearing on Tuesday regarding affiliate nexus tax, or "Amazon Tax", legislation that would tax virtually all goods purchased via the internet.

In addition to being a $100 million tax increase on Rhode Island consumers, House Bill 6164 would fly in the face of a supreme court ruling and the interstate commerce clause of the U.S. Constitution that bars states from requiring out-of-state retailers to collect a sales tax.  The bill will also put Rhode Island at a competitive disadvantage with other states working to ensure that internet transactions remain tax free.

The House Finance Committee has decided to reevaluate the measure and held it for further study following their hearing, however it is likely that the measure will reemerge in the coming weeks.

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